The Necessity of Non-Owner Auto Insurance

By Jasper EricksPublished: Friday, June 26th, 2009

Just because you do not drive a car does not mean you do not have use for auto insurance. That is what non-owner auto insurance is for. However, even if you commute practically on a daily basis do not rush out now and buy auto insurance policy. This type of insurance is not for everyone.

For one, coverage could be limited and may not apply under certain circumstances. The idea of being covered by auto insurance, on the other hand, does sound like a good idea even for individuals who do not own cars. Think of it, if you are someone who frequently travels and rents automobiles or borrows a car quite often, you could find yourself in a car accident.

You may be found liable to pay a huge amount in damages. If you have a non-owner’s auto insurance policy, you have protection and shall not have to worry about paying damages.

Simply put, a non-owner’s insurance policy is auto insurance for a driver who does not have a car of his or her own. This person could often be borrowing or renting vehicles. The policy covers the driver and the vehicle being used.

Practically all insurance companies have auto insurance for non-car-owning individuals. There are factors to be considered before such a policy is given: the driver’s age and gender, driving history, and address. All these will have an effect on the rate of policy premiums.

One drawback of this type of insurance is that it is normally limited. Usually, only the vehicle is covered. Personal injury and damage to other vehicles may not be included in the coverage and even if they are, coverage is minimal.

Protection can be incorporated at additional cost and never will the insurance of the non-owner cover accidents involving family members driving the car. The fundamental feature of a non-owner’s insurance only covers damage to non-commercial vehicles maneuvered by a specific driver.

So why should some people get a non-owner’s auto insurance? Owning and maintaining a car is beyond the means of certain individuals, or they do not regularly need a car and the expense of having one is not necessary. To rent a car perhaps once or twice a month is still more economical than buying one that you only use occasionally and getting insurance for it. A non-owner’s auto insurance is cheaper than a regular owner’s auto insurance and it helps knowing you are covered should you get involved in an accident no matter how small the chance.